ITFC provides $5m for Gambia energy sector

WASHINGTON DC – The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, signed an agreement with Gambia for a total amount of $45 million in support of Gambia energy sector.

Amadou Sanneh, Minister of Finance and Economic Affairs of Gambia (Governor of the Islamic Development Bank); and Eng. Hani Salem Sonbol, Chief Executive Officer of ITFC, signed the agreement at the conclusion of the IDB Group Governors’ lunch on the sidelines of the World Bank/IMF meeting held in Washington DC, with the presence of Dr. Bandar Hajjar, IDB Group President.

The agreement is for the purpose of financing the imports of energy, and petroleum products. ITFC will excel efforts to mobilize financial resources from banks, and financial institutions to finance these imports.

Eng. Hani Salem Sonbol, CEO ITFC, said “as a leading Islamic trade finance solutions provider, this agreement is a milestone to boost the main sector of the Gambian economy. Energy is critical for supplying the country with fuel and electricity, in addition to development, this signing contributes to intra OIC trade as the products to be financed would be sourced mainly from OIC Member Countries.”

The energy sector in Gambia is a key driver of economic activities. The sector supports key industries such as manufacturing, agriculture and services. Therefore, electricity generation and supply is vital to every sector of the Gambian economy. The sourcing of adequate electricity generation will have a positive impact on electricity prices and help reduce the associated costs of insecurity and unemployment.

The signing falls under the framework agreement signed with Gambia earlier this year during the IDB Group’s 42nd Annual Meeting that took place in Jeddah, Saudi Arabia, with the total amount of $210 Million in support of its strategic sectors. — SG